ECB Gets New Powers From EU Over Climate, Crypto Bank Risks - Bloomberg
ECB Gets New Powers From EU Over Climate, Crypto Bank Risks - Bloomberg
ECB Gets New Powers From EU Over Climate, Crypto Bank Risks
- European Union lawmakers set to expand central bank’s remit
- Mandate to include bank-owned crypto asset service providers
The European Central Bank headquarters in Frankfurt, Germany. Photographer: Alex Kraus/Bloomberg
Europe’s top banking watchdog will become more powerful as European Union lawmakers expand its remit to include risks linked to climate change and the rise of digital assets.
As sweeping update of regulation detailed this week mandates the European Central Bank to monitor how lenders plan to transition to a net-zero carbon economy over the next three decades. The reform also puts it in charge of supervising bank-owned providers of crypto asset services.
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ECB Gets New Powers From EU Over Climate, Crypto Bank Risks
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”